Case-Shiller index, Tuesday posted a 12.7% decline for February, which is inaccurate.

The Chief Economist for the National Association of Realtors, Lawrence Yun said."If there are a lot more homes sold on the low end and fewer on the high end, the median price is bound to drop dramatically,"  "In normal times, a median price would reflect typical homeowner equity changes, but these are not normal times. The jumbo mortgage market is frozen and the buying activity is more concentrated in lower-value homes."

This type of reporting gives off a skewed picture of how well the overall market is performing. The media steps in a publishes the headline and the readers then take it as fact that we are worse off than is truly the case. They then act in a manner that causes the economy to perform poorer than it should. People should analyze the headline and take them for what they generally are, an opportunity to sell more media space.

The Case-Shiller Home Price Index reports on 20 Metro areas of which 17 showed a decline. The National Association of Realtors reports on 330 Metro areas of which 78% showed price increases. 

Call us for a better understanding of what all this means to you in the Birmingham Bloomfield Hills area and the opportunities that are available in our local maketplace.